Balance transfer cards: help or trap?

A balance transfer moves debt from a high-rate card to a new card with a low or 0% promotional rate. Used well, it can save interest. Used badly, it can make things worse.

Before you apply

• Check the transfer fee, often a percentage of the amount moved
• Note exactly when the promotional rate ends and what the rate becomes
• Work out a monthly payment that clears the balance before the promo ends
• Check whether new purchases get the promo rate (often they don't)

Avoid the trap

• Don't run up new balances on the old cards
• Pay on time; a late payment can end the promo rate
• Applying for new credit can lower your score a little for a while

General information. Read the card's terms carefully. Nickel Keepers isn't paid by any lender, card company or debt relief company.